Madras High Court Blocks Google's Move to Delist Disney+ Hotstar App from Play Store For Failure To Accept New Payment Policy

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Synopsis

Court clarified that the directions issued are only an interim arrangement without prejudice to the rights of both the parties.

The Madras High Court passed an interim order on Tuesday, preventing Google from delisting the Disney+Hotstar app from its Play Store on Android devices amid an ongoing dispute over Google's new in-app billing policy.

The interim order was passed by the bench of Justice PT Asha in response to a plea filed by Novi Digital Entertainment, the owner of Hotstar, challenging Google's billing policy.

In view of the condition put while granting interim injunctions in similar pleas earlier, the court directed Google to deduct only a 4% fee for every in app download and usage with effect from 20.06.2023.

Court directed Novi Digital to pay the same within a period of three working days from the date on which the invoice is raised by the Google. 

"This is only an interim arrangement without prejudice to the rights of both the parties. This interim arrangement shall commence from 20.06.2023," ordered the court.

The bone of contention in the present matter is that Google mandated all app developers to use its Google Play Billing System (GPBS) for any transactions involving paid app downloads or in-app purchases. In return for these services, Google charged app developers a commission ranging from 15 to 30 percent.

However, Google introduced a new billing system that allows users to select an "alternative billing" option alongside GPBS. This change permitted app developers to use third-party billing systems but with a service fee ranging from 11 to 26 percent.

Earlier other companies like Matrimony.com and AltBalaji, have approached the high court to contest this new fee structure of Google. 

Case Title: M/s. Novi Digital Entertainment Pvt Ltd v. Google LLC and others